As a small business owner, it’s so important to find the right people for your team. I have spoken with small business owners who are thrilled to see their employees go above and beyond to improve the business. They say they never knew that an employee was so dedicated, or that someone exceeded even their highest expectations. But sometimes, and more often than you’d expect, businesses hire the wrong person and end up suffering certain consequences, which include:
- Lost time and lost productivity – We’ve all heard the phrase “time is money,” and hiring the wrong person will cost a business both in training time, and in restarting the hiring process again once they’re gone.
- An unhappy team and workplace – A difficult employee can put pressure on the rest of the team, who must pick up his or her slack, and deal with extra work and stress that they might find unfair.
So, how do we go about dealing with a bad hire? I always try to keep some important questions in mind:
- Is the employee in the right role? In some cases, the person just isn’t a good fit for their role, but they may still be a good fit within the business. Consider speaking with the employee and changing their role, as that may lead to a happier and more productive employee and team.
- Are problems arising from simple mistakes, or cutting corners? Mistakes are part of the learning curve, especially for new employees. It’s possible that the employee has made correctable errors, rather than demonstrate a character flaw.
- Does the employee fit with the company culture? In the end, if the employee is not a good fit within the workplace, it’s best to let them go. Cut your losses early with a bad hire, so that you can save your time and money on finding a better fit, and a more productive employee.
Now that you’ve dealt with a troublesome hire, how do you go about finding the right person? Here are some tips you may want to consider when reviewing possible candidates:
- Do your research. It’s a given that you do your research on each candidate beforehand, but take a closer look at their resume, LinkedIn profile, and references. Note any gaps in employment or any ambiguous points on their resume, and check their online presence on websites like Facebook and Twitter.
- Go beyond the obvious. Ask the candidate questions that go beyond their resume and cover letter. Their answers may reveal more about their personality, and the rapport you build with them may show if they’re a good fit within your company culture.
As a small business owner, hiring is one of the many tasks you have to dedicate time to, and though it may be tiring, finding the right team members will be best for your business in the long run. If you’d like to learn more from other small business owners on hiring, and many other strategies, contact me today!
When we hear the term “staff turnover,” we immediately think it’s a bad sign that a business is not doing well, or they don’t follow the best hiring processes. As a business advisor to small businesses for over 30 years, I can assure you that staff turnover can also be a good thing for your business.
Pros To Staff Turnover:
- Fresh Ideas: When you hire new employees, they can bring fresh perspectives, new experiences and energy that could lead to innovative ideas. When they are not attached to the old ideas nor to the “way we do things” attitude, they can bring you insights you didn’t have before.
- The 20% Rule: You know the saying: “20% of your staff do 80% of the work”. When you reward the 20% for their efforts, this can energize your workforce and strengthen your role as the leader and the balance of staff will either improve their performance or move on.
- Avoid Complacency: When staff feel what they did yesterday is “good enough,” they have become complacent and this can be the enemy of every organization, fostering an environment of “status quo” and an aversion to risk-taking only leads to poor employee morale and increased employee sick time and poor job satisfaction.
Cons For Staff Turnover
- Dismissal: It is never a pleasant thing having to dismiss an employee, but once you have determined employees are no longer fulfilling the role you hired them for, and you have given them ample opportunity to improve, it is time to save your business and let them go.
- Rehiring: Hiring new staff ultimately costs money and time. To ensure you hire the right people from the start with the right skills who fit into the company’s culture, make sure you have a clear hiring process, with written job descriptions and defined roles and responsibilities. You should have an onboarding process and internal measurement and evaluation matrix to ensure they are performing the role you hired them for.
- Train and Communicate: Invest time in training and communicating your expectations of them in their new role. Sometimes smaller businesses have a tendency to hire a person to perform a specific role, but then start loading them with responsibilities and tasks that are outside of that role. For example, asking the new sales person to design your brochures or write content is not realistic.
Your new hire will not know everything about the job in the first week, so do not set them up to fail – rather, give them clear examples of what you expect from them in a measurable and manageable document. Bearing that, if an employee has been with you for many years and is still not able to meet your expectations, then the right thing to do for both you and the company is to let them go.
Regardless of your hiring process, every business needs to have staff turnover as roles change and your business evolves. Don’t see it as a bad thing, or a good thing, but rather a “chance to grow.”
Do you think employee turnover can help or hinder your business?